Reno-based Eldorado Resorts has signed a 20-year agreement with The Stars Group Inc., operators of the PokerStars and Full Tilt brands, in a deal that will give that company access to online sports betting.
Eldorado, which has casino properties in 13 states and operates casinos in Reno, Laughlin and Stateline in Nevada, will receive a revenue share and a $25 million equity stake in TSG with an option to expand its stake by $5 million after five years.
The Stars Group will be able to access Eldorado’s online sports betting, gaming and poker through “skins,” a form of virtual currency. Ultimately, TSG could access real money online gaming across the United States through Eldorado and its land-based provider of retail sports wagering, William Hill US.
TSG will operate under Eldorado’s licenses using TSG’s portfolio of online brands and its online sports technology services and Eldorado is providing TSG with access to its government relations personnel as TSG seeks additional licensing. Eldorado’s suppliers would equally share all costs related to licensing and permitting.
Legal sports betting entered its eighth state Monday with wagers being taken in Rhode Island. Eldorado currently operates casinos in five states that offer legal sports betting — Nevada, New Jersey, Pennsylvania, Mississippi and West Virginia.
Contact Richard N. Velotta at email@example.com or 702-477-3893. Follow @RickVelotta on Twitter.